If you're not quite sure where you want to sell and need some inspiration, then this guide is for you!
Jumping On The Bandwagon: Selling on eBay or Other Auction Sites
eBay became a household name a long time ago and its popularity has since turned buying and selling on eBay into an international institution. eBay attracts over 2 million visitors every day, making it the largest marketplace in the world and one of the most popular sites on the internet.
So it's no surprise that when it comes to choosing a platform to sell on, most people choose eBay. eBay's popularity with buyers is mostly due to the fact that it contains such a wide variety of items - you literally can find almost anything there. Plus, the sheer volume of sellers on the site means that it's a great place to pick up a bargain.
The concept of using eBay as a way to make money is enough to put a smile on anyone's face: You are your own boss, you get to sell something you are interested in and you get to stay at home and that means no time wasted on commuting, no parking charges, no annoying boss or colleagues - and you can work in your pajamas!
Did You Know? Over 1.3 million people make all or part of their living selling on eBay.
On The Downside...
The most commonly complained-about drawback of eBay is the fees. If you browse a few online selling forums, including SaleHoo's very own members' forum, you'll find plenty of grumbling about the increasing cost of selling items on eBay. Beyond that, a lot of sellers (especially new ones!) also find that the competition can be so intense in some categories that it is difficult to make a decent profit.
Although there are quite a few things you can do to overcome these problems, it's also comforting to know that there are plenty of alternative auction and classified sites out there, which, while they don't get anywhere near as much traffic, are either free or very cheap to use, and far less competitive. Some of our favorite eBay alternatives are:
- Addoway.com is a "social marketplace" with a big focus on using social media to increase sale.
- Etsy.com which is a great place for selling unique or handmade items
- ArtFire.com has been rated by users as one of the best and most profitable sites to sell items on. They specialize in hand made and vintage items
- EBid has local sites in more than 15 countries
- Craigslist.org is an online classifieds site with high traffic and low fees
- Bonanza.com has a super-friendly vibe and is getting an increasing amount of attention from buyers lately (plus it has cheap fees)
- Silkfair.com offers an easy store set-up and is a great place to showcase craft and one-off items
- Gumtree.com is another very popular online classifieds site
Going At It Alone: Selling on Your Very Own Website
The benefit of selling on an auction site is that all the marketing is taken care of: Buyers just turn up and you simply put your products in front of them. However, when you sell on an auction site, you don't get a lot of say over the presentation of your listings, user experience - or the cost.
That's why a lot of sellers eventually decide to build their own website. It's pretty easy to do this these days, because there are piles of site builders available, so you don't need to be a developer or know HTML backwards. On the other hand, when you go down this route you do have to be aware that you will be solely responsible for getting traffic to your site - and that's no piece of cake.
There are two ways to get your own e-store: (1) Hire a web developer to build a site for you, or (2), take advantage of one of the great e-store builders now available.
Hiring a Web Designer
Hiring a web designer means you can create a 100% customizable site and the only limit on design and functionality is your budget. If you decide to hire a web designer, you can choose from web-based firms which may be local or from as far away as India and China. Or you can find a local web or graphic design agency by checking your local pages or doing a quick Google search for 'web design + your area'.
Offshore web-based design firms will generally be cheaper, but you may experience frustrations with communication, as most of it will be via email, making it difficult to explain to your designer precisely what you want. Your designer may only speak English as a second language, which could potentially slow things down.
A local designer, while probably the most expensive option for getting a website built, is preferable for most online retailers as it gives them greater control over the development of the site as well as one-on-one contact, which helps when it comes to really personalizing the site. With this option, you are more likely to have satisfactory after-care support in the event you run into any problems. This is hugely important as you cannot make money from a website which has multiple bugs.
Finding the right designer can be time-consuming, but it is essential to take the time to find one who will meet your needs. When talking with potential designers, find out:
- If you will be working directly with a designer, or with an account manager. It is always preferable to work directly with a designer who can answer your technical questions and inform you of what's possible.
- If they have made E-Commerce sites in the past
- If they offer web hosting services, how much it costs and whether you are obligated to use their web hosting services.
- If their quote includes a content management system (CMS) so that you can update your listings and written content yourself.
Site Builders
A much easier option is to use an e-store builder. A quick Google search for 'estore builders' or 'make your own website' will give you a list of options for easily customizable templates, most which require no HTML knowledge (thank goodness!) and contain all the tools and options you need to sell successfully online. Incredibly, some are even free to use! E-store builders allow you to add your own logo and company colors, add and subtract product listings, and integrate PayPal or other payment options.
Some good ecommerce options to check out and compare are:
- SaleHoo Stores - Stores made for you by us at SaleHoo!
- GoDaddy Ecommerce
- Vendio
- Shopify
- HighWire
We recommend using a cookie cutter ecommerce site, especially at first such as SaleHoo Stores. It's much cheaper than designing something from scratch, and you can make the store your own by getting a designer to create a logo for your business. Best of all, many site builders have marketing tools built in, which are a massive help overcoming the challenge of actually getting buyers through the door!
Mixing It Up
Ultimately, selling from auction sites and from your own website both offer some great benefits and many sellers like to use a combination of both.
This gives you the advantage of being able to get traffic from multiple sources, which you can then gradually funnel into your website. A great way to turn auction buyers into website traffic is to send your auction-site buyers a coupon in their package you ship them for 20% off when they buy something from your website. This will go a long way towards increasing repeat customers, gradually eliminating your auction-site fees and ensuring you get the most out of your website.
Quick Recap: Action Steps
- Decide whether you wish to start listing on an auction site, or jump into an e-store right away. We recommend starting on auction sites, or doing a combination of both.
- Sellers going the auction-site route: Decide between eBay and an eBay alternative and create a seller's account.
- Sellers wanting a store: Sign up to an e-store builder such as SaleHoo Stores.
- Once you have established yourself on one selling platform, consider branching out and listing on a second auction or classified site as well, so that you can target multiple audiences.
Next week, we start talking about suppliers! The SaleHoo team are experts in product sourcing, so you can look forward to getting tips straight from the pros, starting with a close-up look at the different supplier types available. Discover how drop shipping works, why liquidation suppliers are so great for eBay sellers and lots more.
